Mahanagar Gas Reduces CNG Price By ₹ 6 Per Kg In Mumbai

While India has dealt with a near continuous rise in fuel prices, there was respite on the horizon for some. Mahanagar Gas (MGL) on March 31 announced a revision to CNG prices in Mumbai and adjoining areas reducing the rate by ₹ 6 per kilo with effect from April 1. At ₹ 60 per kg, the price for CNG in the financial capital is now lower than in New Delhi where the price for the fuel has been hiked by up to ₹ 3.5 per kg in recent weeks. CNG currently retails at ₹ 64.11 per kg in the national capital.

As per reports, the reduction in pricing came courtesy of a revision in VAT on the fuel at the state level. With effect from April 1, the VAT levied on CNG at the state level was reduced to 3 per cent as against the previous rate of 13.5 per cent.

MGL had at the start of the year hiked CNG prices by ₹ 2.50 per litre owing to procuring gas at the market rate to cater to increased demand.

Also see: CNG Dearer By ₹ 2.5 Per Kg In Delhi

As per a PTI report, while Mumbai and its adjoining areas received a notable respite in CNG prices, the Centre on March 31 double the price of domestically produced natural gas for a six-month period starting April 1. This was done owing to a spike in prices globally. A MGL spokesperson in the report stated that the company would evaluate the impact of the centre's price hike and adjust retail prices accordingly.